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What Happens To Gold When Bitcoin Becomes Currency?

Bitcoin may have permanently changed the economic landscape. As more companies, mostly in Fintech themselves, introduce ways of compensating employees with Bitcoin, it’s becoming apparent that Bitcoin could change the financial landscape in a big way. As long as employees are willing to accept Bitcoin as compensation, the crypto looks like it could become a real alternative to fiat currency.

When some pundits have attempted to predict an ultimate value for Bitcoin, they’ve based their numbers on Bitcoin somehow supplanting gold altogether as an alternative currency. They say that even if Bitcoin took 5% of the gold market (which is worth around $5-7 trillion), each Bitcoin would be worth $25,000. But is that even likely? As Bitcoin becomes accepted as a currency and companies even offer compensation in crypto, Bitcoin isn’t replacing gold, it’s replacing fiat currency.

In a future where Bitcoin prices have become less volatile and payment is widely accepted, gold as an asset class will likely remain similar to the way it is today. Gold has not been used for transactions in a meaningful way for hundreds of years. Bitcoin is not eating into gold’s market because it’s more transactional – in fact, it’s the exact opposite. As Bitcoin takes on a transactional role, gold will likely remain a stable, safe-bet asset that protects wealth from volatility and becomes increasingly attractive to investors during periods of uncertainty.

Gold has another edge over Bitcoin as well. While Bitcoin has a built-in scarcity, it’s not the only cryptocurrency out there and it’s not the only one that’s building trust. In addition to being able to buy gold with Bitcoin, you can also buy gold from us with Ethereum, LiteCoin, Bitcoin Cash, Ethereum Classic, and Dash. In precious metals, gold competes with silver, palladium, and platinum, but there are no new competitors, only what’s been in the Earth for millions of years.

Here at Silver Gold Bull Canada, we believe in the long-term value of both gold and Bitcoin, which is why we now accept cryptocurrencies as payment for go ld. Buying gold is an effective way to escape the volatility of Bitcoin and put your profits somewhere safe. Gold investment is one of the most reliable ways to preserve value over time and it has a long track record as a store of wealth. The freedom to exchange Bitcoin for gold with Silver Gold Bull also saves you time and fees switching out to fiat currency.

Gold investments belong in every portfolio and that’s unlikely to change anytime soon. The power of gold is its endurance. Long-term gold prices favor investors who are trying to beat inflation. Whatever happens with Bitcoin, gold investments will remain valuable for centuries. If it’s time to diversify your portfolio and buy gold investments, buy gold with Silver Gold Bull as part of your RRSP to save money. Gold investments make sense for anyone who wants to offset risks they take as part of their retirement strategy.